How can local governments struggle with “envelope” salaries and why do they need it? – clarification of experts

Hromadas are constantly looking for sources to increase their revenues to provide high-quality and accessible services while developing. Issues of filling local budgets should of concern not only to the executive bodies of the local council and deputies, but also to the residents themselves. Everyone living in hromada uses the services provided by the budget institutions and establishments, and therefore has to understand that he/she cannot stand aside the issues of their financing. In addition, the local budget funds the implementation of social and economic development projects of the territory important for each residents.

But so far this is not the case. The problem of the country and every hromada is shadow employment and envelope salaries. In Ukraine, 3.7 million people work without labour relations registration. In 2017, 1 million people received the salary that was less than the minimum, i.e. almost 10% of the total number of employees (10,1 million people). As a result, local and state budgets lose billions of hryvnias, thus reducing opportunities for hromada development and improvement of the quality of services provided to the residents.

The experts of the Financial Monitoring Group of the Central Reform Office under MinRegion (with the support of the U-LEAD with Europe Programme and SKL International) drew attention to the norms adopted in 2017 that transferred powers in the sphere of labour legislation observance to local self-government.

The full version is available in Ukrainian – please click HERE

26.03.2018 - 10:05 | Views: 41715
How can local governments struggle with “envelope” salaries and why do they need it? – clarification of experts

Tags:

budget budget methodology Yanina Kazyuk Viktor Ventsel Ihor Herasymchuk

Source:

Read more:

05 June 2026

Уряд схвалив Концепцію створення єдиної цифрової екосистеми управління публічними інвестиціями

Уряд схвалив Концепцію створення єдиної...

Кабінет Міністрів України схвалив Концепцію розбудови Єдиної цифрової екосистеми управління публічними інвестиціями...

05 June 2026

Проєкт DECIDE оголошує національний відбір громад на грантову програму розвитку академічних ліцеїв

Проєкт DECIDE оголошує національний відбір...

Швейцарсько-український проєкт DECIDE продовжує відбір та запрошує територіальні громади з усіх областей України...

05 June 2026

Quality preparation as the basis for hromada investment

Quality preparation as the basis for hromada...

The conference "Strengthening Resilience: From Strategic Decisions to Hromada Recovery Priorities" brought together...

04 June 2026

Онлайн-конференція “Енергетична стійкість громад: від викликів до практичних рішень”

Онлайн-конференція “Енергетична стійкість...

Центр розвитку інновацій спільно з EDIH “Kyiv HiTech” та робочою групою “Енергоострів” запрошують представників...